Zap Energy, a fusion company based in Everett, Washington, is raising nearly $130 million in a new investment round, according to an SEC filing. The company is working on generating power through fusion reactions by smashing together light atoms to release energy, similar to the reactions that power the sun and stars. While the pursuit of energy from fusion has been ongoing for decades, recent scientific advancements and increased investment in the sector have raised hopes for achieving commercially viable fusion power production. If successful, fusion startups like Zap could provide a nearly unlimited source of clean energy to meet the growing demand for reliable, carbon-free power.
The fusion sector has attracted significant interest and investment as the need for clean energy sources continues to grow, particularly to power data centers and the use of artificial intelligence. Zap Energy previously raised $160 million in 2022, led by Lowercarbon Capital and Breakthrough Energy Ventures. The new investment round would bring Zap’s total funding to approximately $330 million in venture capital, as well as additional government grants. Other companies in the Pacific Northwest, such as Zap rival Helion Energy and General Fusion in British Columbia, have also received substantial investments from notable figures like Sam Altman, Jeff Bezos, and Chris Sacca.
Zap Energy, founded in 2017 by University of Washington professors Uri Shumlak and Brian A. Nelson, along with entrepreneur Benj Conway, uses a sheared-flow-stabilized Z-pinch technology to create fusion. By driving electric currents through superheated plasma, Zap’s device generates powerful magnetic fields to compress the material and create conditions suitable for fusion reactions. The company’s approach is considered simpler than other fusion strategies that rely on massive magnets and lasers. Zap’s collaboration with researchers from Lawrence Livermore National Laboratory has also contributed to the development of their fusion technology.
Despite facing challenges in meeting their targets, Zap Energy has made notable progress in their fusion research. While they did not achieve “scientific breakeven” in 2023 as initially predicted, they have reached temperatures of 11 to 37 million degrees Celsius in their FuZE device, a milestone achieved by only a few technologies. The company was selected by the U.S. Department of Energy as one of eight recipients of funding from the Milestone-Based Fusion Development Program, which is seen as a significant endorsement of their efforts. Despite the uncertainties in the fusion space, Zap is moving forward with their plans to commercialize their technology and is exploring potential partnerships with companies like TransAlta to potentially locate a fusion plant at a coal plant site in Southwest Washington, leveraging existing equipment and workforce for fusion power.
The pursuit of fusion power remains a challenging endeavor, with companies like Zap Energy pushing the boundaries of scientific innovation and technology to achieve commercially viable fusion reactions. With significant investments pouring into the sector, there is growing optimism that fusion startups may soon achieve their goal of providing a nearly infinite source of clean energy. The success of companies like Zap could have far-reaching implications for meeting the world’s energy needs sustainably and reducing reliance on fossil fuels. As Zap continues to make progress in their fusion research and development, the future of fusion power generation looks promising, with the potential to revolutionize the energy landscape.
